Many thx for the advice, its working OK. I have created the USB stick and it now allows me to boot to the USB drive and install Windows 7.
I selected cutom install and let the install program create the partitions. At this point, I received a message box indicating that windows may create more than 1 partition with 1 reserved for system files. After proceeding, the install has created 2 partitions on the hard drive Disk0 Partition1 and Disk0 Partition2 with the 1st one being 100mb and reserved for system files.
Can I delete the this 1st partition and just proceed with the installation on the 2nd partition as I do not really wish to have 2 partitions on the disk or is the 1st partition reserved for system files mandatory for the installation?